Not-necessarily-coincidentally, the Fed tapered by approximately the amount that Treasury net debt issuance was reduced by the sequester. This is another data point that supports the idea that QE is monetization, not stimulus.

If the Treasury has to increase debt issuance due to the new budget, then I’d guess QE will increase (all other things being equal). In the short term, an increase in Treasury rates will only happen if people start to get the idea that the Treasury can’t or won’t pay out on the existing debt. The only other way is for demand-driven inflation to get started, and I can’t see that happening when the feds are reducing everybody’s disposable income through aggressive taxation and regulation.

I’ve come to the necessary conclusion that central banks are inherently evil.